Financial services AI
Transaction monitoring
Analysing activity to identify potentially suspicious financial behaviour.
Definition
Transaction monitoring applies rules, statistical models or machine learning to customer and payment activity and generates alerts for review.
Why it matters
AI may improve prioritisation and pattern detection, but decisions require explainability, tuning, validation and defensible investigation evidence.
Related concepts
- Model risk management
Governance for risks created by incorrect or misused models.
- AI in anti-money laundering
Using AI to detect, investigate or explain potential financial crime.
- False positive
A system flags something as present or risky when it is not.